Financial Information
Is it better to file bankruptcy to get rid of a large credit card balance or use a credit counseling service?
Question : Is it better to file bankruptcy to get rid of a large credit card balance or use a credit counseling service?
This question is related to my Mom who has a very large balance $ 7000, and because her income is limited, the interest is eating her up! She lives with me now, is nearly 70 and never plans to buy a house again or car. I’ve recommended CCCS because they will at least stop the interest so she can finally make a dent in the balance when she pays her $ 200 a month (all she can afford). Her brother told her to file bankruptcy, but I didn’t want her too.
credit card counseling
Best answer:
Answer by Feeling Mutual
Talk to a Bankruptcy attorney, as every case is different.
-
-
#2 written by ladyw0llf 1 year ago
If you file for bankruptcy too soon after getting a high balance that is owed, they can deny your bankruptcy.
It is actually harder to file it now. But the best thing you can do is talk to an attorney. Check on the internet for the Bankruptcy court in your State and County, you can get all kinds of information from the site.
Good luck
-
#3 written by armenian 1 year ago
bankruptcy laws have changed drastically depending on what state you are in. if your debt is less than $ 20,000.00, it might not be worth it to file bankruptcy. credit counseling is like a “mini” bankruptcy. i wouldn’t recommend it. you might as well file bankruptcy because your credit score goes down significantly even if you do credit counseling.
-
#4 written by Thin Kaboudit 1 year ago
- Comment Feed for this Post
You may not be qualified for filing bankruptcy. I wouldn’t recommand credit counseling service as they do absolutely nothing for you. Consider other option such as debt settlement program. Debt settlement program put you on a payment plan and you pay a lot less than you owe depends on how much they are able to negotiate for you. Most companies will be able to negotiate 40% to 60% of the amount you owe. Your credit will take a hit but if you are considering bankruptcy then I presume you already have less than perfect credit.